Crypto Prices Dip Ahead of US CPI and ECB Rate Decisions

Bitcoin and Ethereum prices dipped ahead of highly anticipated US Consumer Price Index (CPI) and European Central Bank (ECB) interest rate decisions. The drop comes as strong US jobs data increased expectations for Federal Reserve rate hikes, with investors anticipating a steady CPI reading at 3.4%.

The US added 162,000 jobs in August, keeping unemployment steady at 4.1%, which raised the probability of a Federal Reserve rate hike. Despite inflation concerns, institutional demand for Bitcoin and Ethereum ETFs remains strong, according to market watchers.

Bitcoin's weekly Super Trend indicator has turned bullish for the first time in months, signaling a shift from the recent downtrend to a more stable upward trend. However, traders on the Kalshi platform remain optimistic, betting on Bitcoin reaching $85,000 by the end of September.